# Agriculture (GAG)

## Title 8. Soil Conservation

### Subtitle 7A. Animal Waste Technology Fund

#### Section 8-7A-01

(a) In this subtitle the following words have the meanings indicated.

(b) "Animal waste technology project" means the research, development, implementation, or market development of technology that is intended to:

  (1) Reduce the amount of nutrients in animal waste;

  (2) Alter the composition of animal waste;

  (3) Develop alternative waste management strategies; or

  (4) Use animal waste in a production process.

(c) "Fund" means the Animal Waste Technology Fund.

#### Section 8-7A-02

(a) There is an Animal Waste Technology Fund in the Department.

(b) The purpose of the Animal Waste Technology Fund is to provide financial assistance to individuals and business enterprises that:

  (1) Conduct research or develop technologies that are intended to reduce the amount of nutrients in animal waste;

  (2) Alter the composition of animal waste;

  (3) Develop alternative animal waste management strategies; or

  (4) Use animal waste in a production process.

(c) The goal of the Fund is to encourage the development and implementation of economically feasible technologies that help protect the public health and the environment by reducing the amount of nutrients from animal waste to enable farmers to meet nutrient management requirements and provide alternative animal waste management strategies to farmers.

(d)

  (1) The Department shall administer the Fund;

  (2) The Secretary may:

    (i) Delegate to any unit in the Department the underwriting, closing, monitoring, and workout functions for Fund loans; or

    (ii) Contract with another entity to perform these functions.

(e)

  (1) The Fund is a special continuing, nonlapsing fund that is not subject to reversion under Sec. 7-302 of the State Finance and Procurement Article.

  (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(f) The Fund consists of:

  (1) Money appropriated in the State budget to the Fund;

  (2) Any other money from any other source accepted for the benefit of the Fund;

  (3) Any investment earnings of the Fund;

  (4) Repayments of principal and interest from loans made from the Fund;

  (5) Income from equity investments that the State Treasurer makes from the Fund;

  (6) Proceeds from the sale, disposition, lease, or rental by the Department of collateral related to any financing provided by the Department under this subtitle; and

  (7) Application or other fees paid to the Department in connection with the processing of requests for assistance.

(g) The Department may use money in the Fund to:

  (1) Provide financial assistance to defray the costs of animal waste technology projects; and

  (2) Pay expenses for administrative, actuarial, legal, and technical services associated with operating the Fund.

(h) The Department may impose terms and conditions on financial assistance provided from the Fund, including administration and transaction fees.

(i) Financial assistance provided from the Fund may be:

  (1) Used only to pay the costs of carrying out an animal waste technology project; and

  (2) In the form of:

    (i) A grant;

    (ii) A loan;

    (iii) A loan guarantee; or

    (iv) A loan that is convertible in whole or in part to a grant on the satisfaction of specified conditions.

#### Section 8-7A-03

(a) To be eligible for assistance from the Fund, an animal waste technology project shall have strong potential for:

  (1) Improving the public health and the environment;

  (2) Preserving the viability of the agricultural industry; and

  (3) Having a positive economic development impact in the State.

(b) If the amount of financial assistance requested exceeds the amount of money available in the Fund, the Department shall give preference to the animal waste technology projects that demonstrate the greatest potential for:

  (1) Improving the public health and the environment;

  (2) Preserving the viability of the agricultural industry; and

  (3) Having a positive economic development impact in the State.

#### Section 8-7A-04

(a) The Department shall establish an Animal Waste Technology Fund Advisory Committee.

(b) The Secretary of Agriculture shall be the Chair of the Advisory Committee and the Department will provide staff support.

(c) Ex officio membership of the Advisory Committee shall include:

  (1) The Secretary of Commerce, or the Secretary's designee;

  (2) The Secretary of the Environment, or the Secretary's designee;

  (3) The Secretary of Natural Resources, or the Secretary's designee;

  (4) The Director of the Maryland Energy Administration, or the Director's designee; and

  (5) The Dean of the College of Agriculture and Natural Resources at the University of Maryland, or the Dean's designee.

(d) The Secretary shall appoint committee representatives to include the poultry and livestock industries, agricultural community, environmental community, agricultural fertilizer industries, energy sector, and other areas of expertise as deemed appropriate.

(e) In consultation with the Animal Waste Technology Fund Advisory Committee, the Department shall:

  (1) Develop program criteria;

  (2) Review proposals; and

  (3) Make project funding determinations.

#### Section 8-7A-05

The Secretary may take all reasonable actions to protect the interests of the Department in its investments, collateral, loans, grants, and other property or interests relating to financing transactions, including forgiving a loan, expending funds from its general and special funds to acquire, dispose of, operate, protect, enhance, or maintain collateral or liens.

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Md. Code Ann., Agric. (as displayed at mgaleg.maryland.gov, October 16, 2026)
